ServiceNow lays out path to $30 billion in annual subscription revenue as AI bets accelerate

• ServiceNow aims to double subscription revenue to $30 billion by 2030.
• ServiceNow's Now Assist product surpassed $750 million in annual contract value, its CFO said.
• ServiceNow CFO Gina Mastantuono reassures investors on AI and forecasts robust profit margins.

ServiceNow made a more forceful case to investors that it can thrive in the age of AI, outlining long-term financial targets and early signs of traction on Monday.

During a meeting with analysts, ServiceNow President and CFO Gina Mastantuono said the company is targeting more than $30 billion in subscription revenue by 2030, up from an expected $15.7 billion in 2026. There's potential upside to more than $32 billion, implying a roughly 20% compound annual growth rate, the CFO added.

ServiceNow also pushed back on concerns that AI could erode profit margins. The company said AI reasoning accounts for less than 10% of its cost to serve, helping it maintain gross margins above 80% even as AI usage rises.

Mastantuono also forecast operating margin and free cash flow margin expansion of 100 basis points in 2027. By 2030, ServiceNow aims to reach a "Rule of 60+," a high bar that combines revenue growth and free cash flow margins that total 60%.

Shares of many software stocks have plunged in the past year on concern that generative AI tools could reduce demand for software and help customers create their own software to replace traditional offerings. The new forecasts from ServiceNow are aimed at reassuring investors that AI is not a threat to its business and could instead become a major growth driver.

The update comes after a solid first quarter from ServiceNow in which subscription revenue rose 22% year over year to $3.67 billion. Still, the stock fell following that earnings report on concerns about AI's impact, margins, and deal delays due to the Middle East conflict.

A central piece of ServiceNow's new pitch is AI monetization. On Monday, the CFO said its Now Assist product, a flagship AI offering, surpassed $600 million in annual contract value (ACV) in 2025 and has exceeded $750 million as of the first quarter of 2026. The company expects that figure to top $1.5 billion by the end of this year and account for more than 30% of total ACV by 2030.

The data suggests AI is increasingly embedded in larger ServiceNow deals. In 2025, 91% of net new ACV came from customers buying five or more products, with a sharp increase in multi-product deals that include Now Assist.

ServiceNow also uses its own operations as proof of concept. Its internal AI deployment generated $500 million in annualized value in 2025, including $100 million in operating expense savings. Those savings are expected to accelerate to more than $200 million in 2026.

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